Trade setup for 11th November



Yesterday we had a stellar opening on nykaa. Its PE is now more than 1600. There is something seriously wrong with the investing community or I am missing something. People who got an allotment have doubled their money in one day. Phalguni nayar's worth is now $6 billion. 

People are indeed crazy. I did apply for paytm IPO and the subscription response is not very good from the investors and it's a very big issue. I am somewhat seeing a reliance power kind of response here. Very huge issue and on opening it went down. Let's see what will happen. I will be happy if I did not get an allotment.

 Elon musk sells $1billion worth Tesla shares and it fell 12% day before yesterday and yesterday it shot up 4%

Inflation rises in the US but there are some indicators that show that inflation is peaking out. Probably the markets knew this and that's why markets did not fall despite inflation. US CPI data at 3 year high.

Keep an eye on the dow jones. It will be interesting to see if 20DMA will be protected there or not.

Zomato losses have increased. Now they are planning to invest $1billion in various startups. Not sure what their plans are. Seeing this, I feel nykaa is better placed than this. By the by I am not good at identifying a good company and a bad company. When in doubt, better stay away. 

MY TRADES

  1. Most of my trades are in a good profit for this week and month. The call ratio spread which I took sometime back is in good profit and it will be expiring today with a decent profit.
  2. I am not expecting a runaway market. So, I am planning to take a call ratio spread for the Dec series as well. So I will be taking the below trade today or tomorrow in the December series
    1. +1 X 18500ce
    2. -3 X 18800ce
    3. -3 X 18700ce
INTERNATIONAL MARKETS
  1. After 10 days of green, Nasdaq is in the red for the second day. Yesterday it fell 1.6%.
  2. Even the dow closed in the red for the second day as the inflation data did not please the street. Disney numbers were also not as expected.
  3. Europe closed in the green. FTSE closed with a gain of around a per cent.
  4. Today the Asian markets are in the red following the US markets. SGX is suggesting a 50 point gap down.
FII AND DII
  1. FII sold for 469cr and DII bought for 766cr
CRUDE AND $
  1. Crude is at $83
  2. $ is at Rs 74.38
Expiry setup
  1. Markets are weak and I don't think 18200 will be taken out. I am selling CE above 18200 aggressively.
  2. I will execute a short straddle if there is a huge gap down and will manage it.


Comments

Post a Comment